ESG standards and regulatory frameworks are key factors driving energy investments in Africa, particularly in the oil and gas sector. According to Eleanor Adaralegbe, CFO of Seplat Energy, ESG influences project risks, compliance, and financing options. Speaking at the Africa Oil Week in Cape Town, she emphasized the need for companies to align with international ESG standards, conduct due diligence, and engage stakeholders. Seplat Energy has adopted a proactive approach to ESG, driven by its board and CEO, integrating sustainability into its strategy to support energy transition and long-term business viability.
ESG plays a crucial role in shaping investment attractiveness, with investors increasingly focused on environmental impact, governance, and community relations. Projects that meet ESG benchmarks gain better financing and project outcomes, while poor ESG performance can lead to higher costs and reduced valuations. Investors are particularly interested in energy transition projects, such as natural gas, and carbon offset initiatives.
Seplat Energy’s commitment to sustainability, through upstream and midstream energy initiatives in Nigeria, showcases the importance of strong governance, HSE (Health, Safety, and Environment), and transparent reporting. Adaralegbe stresses that integrating ESG into business operations is essential for ensuring long-term success and fostering stakeholder trust. As regulatory demands evolve across African countries, energy companies must navigate complex frameworks to meet ESG requirements and ensure compliance, thus enhancing project attractiveness and mitigating climate-related risks.
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